Understanding Financial Products and Services
Review Finances
Check Window
A check from the same bank, rarely used, when you don’t have your checkbook and need to withdraw funds from your checking account.
Certified Check
The current account holder can request the bank to withhold the amount under the check until payment, ensuring its payment (if funds are available). The deadline is 15 calendar days or the time of conformity.
In Case of Default, How Can You Prove Non-Payment?
Notarial Protest
A statement attesting to the default, issued in a report by a notary.
Declaration of Default (Replacement for Protest)
Performed by the bank-book, camera, or clearing system, noting the day of check presentation and non-payment.
Maximum Time to Practice a Check in Spain
Before the deadline for submission, or within 2 working days if filed on the last day. Legal Deadlines:
- 15 Days if issued and payable in Spain
- 20 Days if issued in Europe and payable in Spain
- 60 Days if issued outside of Europe and payable in Spain
Can You Endorse a Check or Promissory Note?
Endorsement
Check transmission to another person with a nominative sign and DNI. Yes.
Housing Savings Account Characteristics
- Transcription-tax personal income tax: Establishes a savings fund for purchasing, constructing, or extending a homeowner’s property.
- Higher interest rates.
- Duration: 4 years.
- Money must be used for the account’s purpose; otherwise, estate tax, interest, and other expenses must be paid.
Certificates of Deposit Characteristics
Documents or receipts evidencing time deposits issued by banks, transferable by endorsement at any time.
Loan vs. Credit Differences and Expenses
Loan
An active operation providing a specific amount of money from a bank into a checking or savings account. The customer repays the loan plus interest in installments. Expenses: commission, study fees, brokerage, cancellation commission, etc.
Credit
An active operation where a bank makes available sums up to a limit and for a certain time. Expenses: opening fees, brokerage, credit interest rate, overdraft fees, etc.
Loan interest is paid on the entire amount received, while credit interest is only paid on the amount borrowed.
Loan Types and Settlement Methods
Types: Personal and mortgage.
Settlement Methods: Bonds (constant annuities, American, Italian, and payment).
Financial Services
- Receivables Management Effects or Effects on Collection Management: Services
- Debiting of Bills: Services
- Loans: Active
- Housing Savings Account: Passive
- Current Account: Passive
- Buying Shares: Services
- Credit Account: Active
Mission of the Financial System
To link savers with investors.
European Central Bank vs. Bank of Spain
- Both are central banks, one regulated by the EU and one in Spain.
- The European Central Bank formulates monetary policy, while the Bank of Spain controls its implementation.
Types of Banking Financial Institutions
- Private Banks: Private companies engaged in banking business.
- Savings Banks: Nonprofit institutions with functions similar to private banks.
- Credit Unions: Engage in banking business, primarily serving their partners.
Securities Firm vs. Broker
A securities firm can act independently in the sale of shares, while agencies act as employed mediators in the sale of property values.
Leasing Company
Finances capital equipment through a leasing contract, offering tax benefits and a purchase option at the end for the residual or symbolic value. Renting vs. Leasing: Leasing includes a purchase option.
Fixed Income Products
Assets providing fixed yields on the nominal value of the issue, known in advance.
Equity Products
Assets with variable returns, unknown beforehand, depending on the company’s profits.
Debt vs. Equity Products
Debt products guarantee a profit, while equity products’ returns vary with the company’s profits.